TWLO - Twilio: Repeating A Failed Plan Hoping For A Different Outcome

2024-03-17 02:34:05 ET

Summary

• Activist investors want Twilio to sell off its underperforming Segment business and focus on its original communications business.
• Twilio has undergone significant restructuring, it separated Segment from Communications, announced management changes and cost-cutting initiatives.
• The new CEO plans to re-integrate Segment with the Communications division not to sell it, the company's profitability and growth remain uncertain.

Having been engaged by activist investors who want Twilio ( TWLO ) to sell itself as a whole or sell off its underperforming Segment business, focus on its original communications business, cut costs, and move towards profitability. Twilio spent 2023 re-designing its business, changing its cost and capital structure.

2024 began with the resignation of the founding CEO, more restructuring, and a promise to deliver the result of a strategic review of Segment in early March....

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